Gold prices: Value of the yellow stuff rises in modest rally as Hindu festival of Diwali approaches
The price of gold has modestly rallied in the run-up to Diwali, the Hindu festival of lights, on Sunday.
Spot gold prices were trading at $1,269.83 per ounce today, up almost $30 from lows earlier this month.
Prices often rise as the festival approaches each autumn, as giving and receiving gold is a key part of the celebration, signifying prosperity.
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“Having been on the receiving end of increased downward pressure as Hillary Clinton extends her lead in the US presidential election and expectations of a US Fed rate hike, South Asian demand has lifted prices from a low of $1,241.50 per ounce on 7 October,” said Henry Croft, research analyst at Accendo Markets
The precious metal is now in an uptrend for the month of October, having initially fallen to its lowest level since the Brexit vote after a 'taper tantrum' on reports that the European Central Bank (ECB) would gradually curtail bond purchases. The ECB has since denied that this will happen or was even mentioned in proceedings.
The yellow stuff is still up more than $200 an ounce since the beginning of the year, though it has fallen from a July peak of more than $1,360 per ounce.